Salient to Investors:
IPOs globally raised $41.3 billion, the worst Q2 since 2009, down 34 percent from a year ago – hurt by Europe, slowing Chinese growth, and Facebook’s drop. Asia saw its slowest Q2 for IPOs since 2009.
The S&P 500 Index moved an average of 1 percent a day in June, about twice the rate of the previous five months, and near the 1.3 percent average between April and December 2011, which was twice the five decade average.
Ronald Wan at China Merchants Securities said the shift of investors’ attention to Southeast Asia may continue at least through the end of the year as it offers a good alternative to global investors.
Jack Ablin at BMO Harris Private Bank said that as long as Europe’s debt crisis is unresolved and U.S. economic recovery remains uncertain, stocks will struggle and IPOs will encounter slack demand. Ablin sees a distrust of equity markets in general.